Skip to main content

2 Stocks That Can Create Lasting Generational Wealth

The economy witnessed better-than-expected GDP growth in the 2022 fourth quarter. While optimism regarding the possibility of a soft landing is rising, uncertainty remains. So, fundamentally sound stocks Johnson & Johnson (JNJ), and Coca-Cola (KO), which pay stable dividends, could be ideal additions to your portfolio. Moreover, these stocks have a solid dividend-paying history and might help create lasting generational wealth. Keep reading...

Retail sales in the United States decreased by 1.1% in December 2022, while manufacturing output fell by 1.3%, suggesting weakening economic development.

However, according to the Commerce Department’s report, the US economy demonstrated its strength with a better-than-expected GDP growth rate of 2.9% in the fourth quarter of 2022. Despite bearing the brunt of the Federal Reserve’s consecutive interest-rate hikes, the U.S. economy maintained stable growth.

In addition, President Biden dismissed recession possibilities with the U.S. economy’s 2022 fourth-quarter GDP growth. The strong labor market, historically low unemployment rate, and the declines in inflation during recent months are raising the possibility of the economy achieving a soft landing.

However, as uncertainties remain, investors could consider buying fundamentally sound stocks Johnson & Johnson (JNJ) and The Coca-Cola Company (KO), which are paying solid dividends. Also, these stocks have a steady dividend-paying record and might help create lasting generational wealth.

Johnson & Johnson (JNJ)

JNJ and its subsidiaries research, develop, manufacture, and sell various products in the healthcare field worldwide. The company operates through three segments: Consumer Health; Pharmaceutical; and Medical Devices.

On December 22, 2022, JNJ acquired Abiomed Inc. (ABMD), a world leader in breakthrough heart, lung, and kidney support technologies. With this acquisition, JNJ is expected to engage in extensive research and development in cardiology, lung, and kidney-related ailments.

JNJ has paid dividends for 60 consecutive years. Over the last three years, JNJ’s dividend payouts have grown at a 5.9% CAGR. While JNJ’s four-year average dividend yield is 2.60%, its current dividend translates to a 2.69% yield.

JNJ’s consumer health segment revenue came in at $3.77 billion for the fiscal year 2022 fourth quarter, up marginally year-over-year. Moreover, its adjusted net earnings came in at $6.22 billion, representing a 9.5% year-over-year increase. Its EPS increased 10.3% year-over-year to $2.35.

JNJ’s revenue is expected to increase 2.8% year-over-year to $97.64 billion in 2023. Its EPS is expected to grow 3.4% year-over-year to $10.50 in 2023. It surpassed EPS estimates in all four trailing quarters. JNJ’s shares have lost marginally intraday to close the last trading session at $168.23.

JNJ’s POWR Ratings reflect this promising outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

JNJ has a B for Value, Stability, and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #4 out of 170 stocks. Click here for the additional POWR Ratings for Sentiment, Growth, and Momentum for JNJ.

The Coca-Cola Company (KO)

Famous beverage company KO manufactures, markets, and sells various non-alcoholic beverages worldwide. It provides sparkling soft drinks, enhanced water, juice, dairy, and syrups.

On October 25, 2022, James Quincey, Chairman and CEO, said, “Our business is resilient amidst a dynamic operating and macroeconomic environment. We are investing in our strong portfolio of brands, which is a cornerstone of our ability to deliver long-term value for our stakeholders.”

KO has paid dividends for 60 consecutive years. Over the last three years, KO’s dividend payouts have grown at a 3.2% CAGR. While KO’s four-year average dividend yield is 3.06%, its current dividend translates to a 2.91% yield.

KO’s net operating revenues increased 10.2% year-over-year, for the fiscal 2022 third quarter ended September 30, 2022, to $11.05 billion. Its operating income came in at $3.09 billion, up 6.6% year-over-year. The company’s gross profit grew 7.1% year-over-year to $6.50 billion.

Analysts expect KO’s revenue to increase 3.6% year-over-year to $44.31 billion in 2023. Its EPS is expected to grow 2.4% year-over-year to $2.55 in 2023. It surpassed EPS estimates in all four trailing quarters. The stock has gained marginally over the past year to close the last trading session at $60.49.

KO’s overall B rating equates to a Buy in our POWR Ratings system. It has an A grade for Sentiment and a B for Stability and Quality. The stock is ranked #17 out of 35 stocks in the A-rated Beverages industry. We’ve also rated KO for Momentum, Value, and Growth. Get all the KO ratings here.

Consider This Before Placing Your Next Trade…

We are still in the midst of a bear market.

Yes, some special stocks may go up. But most will tumble as the bear market claws ever lower.

That is why you need to discover the brand new “Stock Trading Plan for 2023” created by 40-year investment veteran Steve Reitmeister. There he explains:

  • Why it’s still a bear market
  • How low stocks will go
  • 9 simple trades to profit on the way down
  • Bonus: 2 trades with 100%+ upside when the bull market returns

You owe it to yourself to watch this timely presentation before placing your next trade.

Stock Trading Plan for 2023 >


JNJ shares were trading at $163.12 per share on Monday afternoon, down $5.11 (-3.04%). Year-to-date, JNJ has declined -7.66%, versus a 5.11% rise in the benchmark S&P 500 index during the same period.



About the Author: RashmiKumari

Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.

More...

The post 2 Stocks That Can Create Lasting Generational Wealth appeared first on StockNews.com
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.